DuPont Decomposition
Why does AHLEAST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.2% = 15.7% × 0.17 × 2.75
Latest: FY2025
Profitability
Net Margin
15.7%
-67.7% →15.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.06x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.75x
1.33x →2.75x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.2 pp over 4 years. Driven by net margin improving (-67.7% → 15.7%), asset turnover improving (0.06x → 0.17x), leverage rising (1.33x → 2.75x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -67.7% | 0.06 | 1.33 | -5.0% |
| FY2023 | ₹0Cr | ₹0Cr | 26.5% | 0.38 | 1.19 | 12.1% |
| FY2024 | ₹0Cr | ₹0Cr | 29.4% | 0.18 | 2.63 | 13.8% |
| FY2025 | ₹0Cr | ₹0Cr | 15.7% | 0.17 | 2.75 | 7.2% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.